Bad Advise

Bad Advise

Didn't find your answer?

From her previous Accountant. The company incorporated in 2006, has never registered as an employer for PAYE so has made no tax or NI deductions from her staff or made any employers NI payments. Also hit the VAT threshold in early 2007 but was never registered. She has made calculations and due to large start up costs in 2006 things there may be a rebate due there anyway. What is the best way forward with this one? Has anyone been in this position with a client and what did you do?
Rachel Rossiter

Replies (5)

Please login or register to join the discussion.

avatar
By User deleted
22nd Apr 2009 18:55

confused re rebate.
It is not clear to me why the large start up costs will change the situation re employees
paye not being paid over to the inland revenue. I am sorry I cannot see why the other accountant can be blamed if you are in business you know that people have to pay tax on their salaries. Sounds like a typical new client ,blame the other accountant.
However, my concern is for the employees they will have two year gap in their ni contributions and for this reason I think it is essential that you discuss situation with client
explain that it will take time and money for you to sort out. Ofourse it does not stop there
what happened to company accounts ? Have they been filed. Will they need amending.
Good luck

Thanks (0)
avatar
By hammelaccountancy
22nd Apr 2009 16:17

PAYE
In relation to doing payroll correctly from now on and deducting PAYE & NI, do I just ring up Inland Revenue and register her for going forward? Or should I declare now the situation to them?

Thanks (0)
avatar
By neileg
22nd Apr 2009 13:24

Who's fault?
I agree with Paul. It may be the client's fault, or the accountant's or a bit of both, but it's not your fault. You need to give the client all the information and assistance needed to correct the error. What the client does about any previous bad advice is the client's choice. You would do well to keep out of any dicussion of who is to blame and what action to take. You won't benefit from this.

Thanks (0)
avatar
By User deleted
22nd Apr 2009 12:47

tut, tut....
Who advised you to spell it 'advise'???

Please take my advice

I would advise you to use 'advice'.


Thanks (0)
avatar
By User deleted
22nd Apr 2009 12:04

hey
Hey Rachel
Yep. Similar to you.
Ended up it wasn't the previous accountant's fault in the end. It was the client had ignored reminders, didn't give them info needed etc and then blamed the old accountant.
Anyways, it could be previous accountant fault. Whatever.
I worked out exactly what the position would be. How much was underpaid, what was due, etc etc etc..
By the way, are all the employees paid over the thresholds? If no TAX and NI due, then I think any penalties are reduced to NIL - i think.
Then clearly show the client the position and make your recommendations. It might not be too bad in the end, but at least you will be able to give actual figures to the client.
Then, it's up to the client. If they want to make a claim on old accountants, then they can but it needs to be clearly the old accountants fault.
Hope this helps.

Thanks (0)